Seattle VC Uses AI and Public Building to Find Startup Opportunities

Seattle-area venture capitalist Yohei Nakajima isn’t just investing in artificial intelligence startups—he’s actively using AI every day to reshape how venture capital works.

As a partner at Untapped Capital, Nakajima has been experimenting with generative AI since 2022, well before tools like ChatGPT became widely adopted. Today, AI plays a central role in nearly every aspect of the firm’s operations, from sourcing startup deals to evaluating companies, handling administrative work, and supporting marketing efforts.

His hands-on approach has also helped Untapped Capital gain visibility within the AI community while uncovering new investment opportunities.

Building AI Products in Public

One of Nakajima’s most distinctive strategies is building AI projects openly and sharing the development process with the public.

Earlier this year, he created VCpedia, an AI-powered startup intelligence platform using vibe coding techniques. In 2023, he also released Baby AGI, an open-source autonomous AI agent project that quickly gained widespread attention within the developer community.

By publicly sharing these experiments, Nakajima has been able to connect directly with AI developers, receive continuous feedback, and stay ahead of emerging technology trends.

According to him, building in public serves multiple purposes at once.

“It’s both R&D and marketing and relationship-building all tied into one,” Nakajima explained, adding that the approach also provides valuable insight into how people are actually using AI tools.

Custom AI Tools for Founders

Untapped Capital has also developed several custom GPT-powered tools to assist startup founders.

One of its most popular creations is “Mean VC,” an AI assistant designed to challenge startup ideas and improve investor pitches through constructive criticism.

Nakajima said founders have responded positively to the tool, using it to strengthen business plans before approaching investors.

AI Is Changing Venture Capital

Inside Untapped Capital, AI has become deeply integrated into daily workflows.

The firm now relies on AI for:

• Startup sourcing
• Deal evaluation
• Due diligence
• Data entry
• Marketing
• Internal productivity

This practical experience has also led directly to new investments.

While building AI-powered due diligence software internally, Untapped connected with Seattle startup Wokelo, which was developing similar technology. The relationship eventually resulted in Untapped investing in Wokelo’s pre-seed funding round in 2023.

Leading AI Adoption by Example

Nakajima believes successful AI adoption begins with leadership rather than company-wide mandates.

Instead of simply encouraging colleagues to use ChatGPT, he demonstrated its value during everyday work.

Whenever teammates asked questions that AI could answer, Nakajima would create ChatGPT conversations and share them directly with the team.

Over time, seeing the practical benefits encouraged others at Untapped Capital to incorporate AI into their own workflows.

According to Nakajima, this hands-on approach proved far more effective than simply asking employees to experiment with AI on their own.

Betting on the Future of AI

Looking ahead, Nakajima expects AI to become increasingly embedded within business operations.

He believes organizations will gradually rely on AI to complete more work alongside employees, with artificial intelligence contributing a growing share of overall productivity.

As an investor, he is particularly interested in several emerging areas, including:

• AI agents
• AI authorization systems
• Enterprise AI governance
• Consumer AI applications for film, gaming, and music

These sectors, he believes, represent some of the most promising opportunities for the next generation of AI startups.

Untapped Capital’s Investment Strategy

Untapped Capital describes itself as a pre-seed generalist venture capital firm focused on startups across the United States.

The firm has raised $9.5 million for its inaugural fund and has completed 36 investments.

Its typical investment ranges between $250,000 and $500,000, primarily targeting startups raising capital at valuations of $10 million or less.

As AI continues transforming both startup creation and venture investing, Nakajima’s builder-first philosophy illustrates how investors can gain a competitive advantage by actively using the technologies they back rather than simply observing them from the sidelines.

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